tv The Kudlow Report CNBC June 13, 2012 7:00pm-8:00pm EDT
okay. i've got a lot of positive feedback for last night's show about how caroline thinks we could be at a crucial level to be a springboard up. today was bad so i checked in again. she said, we held the levels. no need to panic. this is in synch with what i'm thinking. tim collins says so far we are fooling around at the 200-day. so listen, the technicians aren't worried by what happened today. there's always a bull market somewhere. i promise to find it for you on "mad money." i'm jim cramer and i will see you tomorrow. hey, larry, what do you have for us? >> thanks, jimmy. retail sales down for the second straight month. i'm troubled over a possible global recession. gosh, i hope i'm wrong. good evening, everyone. i'm larry kudlow. this is "the kudlow report." our top story tonight, polls increasingly showing his momentum growing.
mitt romney took his pitch to the business round table quarterly meeting. he told ceos to focus on what president obama has done. not what he says he'll do. he called obama's words cheap and labeled obama the most anti-business, anti-jobs president in modern america. whoa. in my opinion, mitt romney is the most conservative republican to run for president since ronald reagan and barack obama, the most liberal left democrat since george mcgovern. we'll debate. jamie dimon gives a polished, glib and well rehearsed, occasionally contrite testimony in front of the u.s. senate. tonight we ask, has he become the poster boy for implementing the volker rule for banks investing their own money? it's not what mr. dimon wanted and possibly a breakup of too big to fail banks going back to the old glass stegal act. despite his slick testimony the dow lost 77 points.
retail sales fell. it's a bad omen for the u.s. economy. we could already be in a global recession. i hope i'm wrong. first up when mitt romney spoke to members of the business round table today his message was clear. president obama is bad for business and the economy, period. take a listen. >> if you look at his record over the last three and a half years you will conclude, as i have, that it is the most anti-investment, anti-business, apt jobs series of policies in modern american history. >> his message seemed to be resonating with voters giving romney momentum as both canada datas head to -- tomorrow. he's besting obama even in wisconsin for the first time. 47-44. all right. here for the latest on the race, cnbc contributor robert costa of the national review.
rumor has it you saw mitt romney's speech to the round table. did he hit the right notes? did they applaud? >> i have been on capitol hill all day. the buzz is positive about mitt romney's speech. he's not taking the business community for granted. he's going back to the base, back to business leaders and reiterating why he's the stronger candidate. he's strategic. a day before the president goes to ohio to talk up his agenda romney is laying his out. >> is this a prebuttal? that's the buzz i'm getting. >> obama says the private sector is fine. tomorrow we hear from sources on the hill he'll try to walk back the comment with a speech in ohio. romney is hammering him trying not to let the president get the buzz saying he's the business candidate. what better way than to go in front of ceos on the hill. >> do you expect obama to change any of his message on the
economy when he speaks tomorrow? do you expect a change? >> no. we have seen president obama tinkers. he's still going to run as a big democrat. i expect him to wag the finger at republicans as he always has. >> many thanks as always. we have democratic strategist and former clinton adviser richard sakaretes. we have the author of the dependency agenda. kevin, i'm just making this as a serious point. mitt romney is the most conservative republican to run since reagan. what's your thought? >> uh, no. >> who's more conservative? >> george w. bush was more conservative. >> after all the spending you criticized? >> yeah. he was terrible in office. but his message and his political outlook was more conservative. romney is a guy who would have
been on the conservative wing of the republican party 20 years ago. >> do you like his business message? >> it's the only message of his that matters. him at the business roundtable is where he wants to be. he's composed, informed, experienced. it's his element. this is the conversation he wants to have over and over again between now and november because barack obama can't walk into the room with credibility and give the same speech. he can't. >> richard, as a former clinton guy, key clinton strategists like who do we hear from? greenburg put out a memo. >> carville. >> they say that if obama stays on his current message that the economy is somehow getting better which people do not believe he's a sure loser and he must change his message. i want to get your take on that. must obama change his message on
the economy. >> first of all, i think they said he has to do more to share with the american people his vision for the future rather than talk about how we avoided this armageddon. >> no one believes the economy is getting better. >> i want to agree with you. i do think governor romney is the most conservative republican to run in a long time. i think the president is a moderate. i love saying this because it makes you crazy, but the president is a moderate. he's a centerist and the voters will see that. you know, that's really going to be the choice. it's about trust. the choice will be about, you know, are we moving forward? are we going back to the bush policies? >> richard, my love. you're terrific. i just want to say all the clinton people are deserting obama now. you see it all the time beginning with president clinton himself.
>> i don't think that's true. >> archer davis. >> i'm a clinton guy. i'm very excited about the president's re-election. >> the clinton wing is in revolt against obama's anti-business policies. >> i don't think that. >> you're going to vote for romney. >> that will never happen. governor romney is the most conservative person we have on social policies. >> like bill clinton. the era of big government is over. what do you think? >> he brings up social policies and i expect that's where the president will turn the conversation. he would rather talk about gay marriage, abortion, whether we'll have federally funded conception for people like sandra fluke who apparently can't afford $3 for a prescription. the economy is a mess. 52% of people put the economy as their number one issue. health care is number two. it's the only thing that mattersment. >> i have to bring in kevin
williamson -- madden. welcome. >> good to be with you. >> i want to ask. you have all the top clinton strategists trying to tell obama he's a loser if he doesn't change his message. i heard some interesting buzz from washington people today. they are telling me first that, yes, obama is going to change the message and is now suddenly going to embrace the deficit reduction of simpson-bowles. i want your take on that. what will mitt romney do if obama embraces simpson-bowles? >> there is a lot of criticism for the president from a lot of democratic strategists. the sum of it is ak loin the record. kevin williamson brought up a good point. what's at odds is you have a president presiding over a sluggish economy. he needs business to do well. needs people to feel confident.
the american public feels like the country is going in the wrong direction. >> that's why the christian ton guys are saying to change your message. if he does change his message, richard wants him to change the message. no question. i have a romney voter here. unless obama changes the message. i want to ask you, will it put heat on your man who has a lot of momentum if obama suddenly out of the blue embraces the simpson-bowles deficit reduction package? what would your response be? >> all the message morphing in the world won't help president obama. what helps is performance. what the american public is looking for is performance. what they want desperately are solutions to the economic anxieties they have. they have seen the president blaming republicans on capitol hill though the president presided with democratic super majorities where he passed the
bill the public wasn't happy with. he passed a health care bill that cost over a trillion dollars over ten years at a time we couldn't afford it. that's a problem. >> do you think it's possible obama could change his economic message as per this greenburg, es, memo from the clinton people from richard's crowd and the clinton people were smart. much smarter than the obama people who were so far to the left they can't get out of their own way. is it possible obama will listen to the clinton people and embrace deficit reduction? what would that do the race? >> simpson-bowles is a good program. i wonder if he's met nancy pelosi or harry reid or the people who declared it dead on arrival in congress. i don't think he can change his message. he's too much of a believer in the goodness and rightness of every thought that comes into his head. people say he's a socialist, marxist.
he's an obamaist. he believes in his own perfection. >> all these guys, axelrod and jarrett. they are so far to the left. >> this election is not going to be decided by wall street. >> i agree with that. governor romney may be from big business but he's not a jobs creator. >> you're not changing the message. >> i'm not. the election won't be won on rhetoric. all governor romney has is rhetoric. >> i'm glad you're not changing the message. romney will win by eight point ifs you don't change the message. the clinton guys are trying to send a message. kevin madden, richard and kevin williamson. coming up, high risk shock waves. jamie dimon in the hot seat on capitol hill today. cnbc's mary thompson talks to him exclusively. is it time to break up the big
jpmorgan's jpmorgan's ceo jamie dimon jousted with senators today. he told lawmakers he could not defend how a hedging strategy in london turned into a multi billion dollar bad bet. well, our own mary thompson scored an exclusive interview with dimon directly after the hearing today. mary joins us now from washington. first of all, that was one hell of a great interview. i watched it. nicely done. what were your key takeaways? start me off. first of all, he's willing to admit his company made a mistake born out of comply century si at the beach. he put a lot of trust in ina drew, the woman who ran the chief investment office which was the group responsible for the losses. this is apparent. he said there was lax oversight in the group and in risk controls as well. in fact, he told us he signed
off on a memo that allowed the group to change the way it measures risk known as var but he doesn't recall signing off on it. listen up. >> i was copied on a memo. it said there was a change in the var model. that will come out. i paid virtually no attention toyota. i didn't think it was significant at the time. var is not my favorite method of looking at risk. >> a couple of things to keep in mind. the press will jump on that. the bank has a number of different var models. dimon isn't likely to know all of them. this was a group that was known to be executing a new strategy on a big trade. a lot of people may ask, you know, if you knew you were changing this big trade they had on basically protection against another credit event, may he should have been more aware of changes to the way they do
measure risk, larry. another thing i asked him is give that he had once the sterling reputation as great risk manager but now the bank is a poster child for volker. i asked how he felt about it. >> i don't think this informs volker very much in my personal opinion. the hedging, macro hedging portfolio, we think it is allowed. doesn't mean it always works. there is an irrational thought it has to work. no. things don't go the way you expect. >> it was interesting to hear him talk about that and say one of the things about volcker, he said part of the problem with volcker is he would have a hard time defining what is hedging and proprietary trading. his main concern remains that it will have greater negative impact on the capital markets because it will restrict the trading the companies do. >> i agree with your inference
that he's a poster child for volcker. you were so tough. at the top of the interview you were talking about his statement that it was a tempest in a tee teapot. i think he said it in april before all the information came out. you asked him, why didn't you know? are you lying or didn't you know? he said, i didn't know. if he knew it was a tempest in a teapot how can he say he didn't know? >> i think -- i gave him two options. when you said it was a tempest in a teapot there were two things people inferred from that. one is that you were lying when you said tempest in a teapot or, two, you didn't know how great the loss could be. he said, i didn't know it was going to be this big. he said, do you think i'm stupid? do you think i would lie about this and open him and the company up to a great deal of litigation and enforcement actions, too. that would be basically withholding material
information. >> all right. mary, great stuff. we appreciate it. many thanks to mary thompson. joining me is distinguished democratic senator from oregon, banking committee member jeff merkley who was there today. senator, thank you, sir. at one point in the testimony, and i did see your exchanges but jamie dimon says on this investment fund, he said it was a conservatively managed fund. he said this is a conservative fund. derivatives, hedging of hedging, european corporate bonds. those are high risk trades, are they not? this isn't conservatively managed. >> absolutely. they have sold a hundred billion dollars of insurance against the possibility that an index of credit bonds would not fall. when it did they had to pay out the insurance. that's high risk trading,
proprietary trading by anybody's definition. >> therefore, doesn't mr. dimon become a poster boy for the volcker rule? taxpayer money stands behind this. funding is hard to trap but taxpayer deposits backed by the fdic might have been used. he said we set up an investment unit. they did high risk stuff. next thing we know it was a huge loss. i'm sorry about that. that illustrates exactly why you have a rule. second if the high risk trading blows up, it can take down the institution. it can throw shock wave tlus the market.
the successful economy is loan availability for families and businesses that are supposed to come from the banking world. >> tom hoenig is now on the board of the fdic. richard fisher of the dallas fed. they're saying if it's too big to fail it's too big. if it's too big to fail and too big it's too big to manage. therefore i ask you is it time for us to break up the big banks that are too big to fail and go back to glass stegel where the taxpayers were behind deposits and loans and whatever investments you wanted to make. hedge funds, private equity, venture funds, whatever. you can make them but no taxpayer support. is it time for the old mod snl. >> it set up a series of fire walls so you had banking as a
boring enterprise. you take deposits and make loans. essentially that's what the volcker firewall does as well. it says you stay in the world of making loans rather than be in the hedge fund world oh. the larger you are, if you blow up, the bigger the shock wove v waves through the economy. you either have to have very bright clear rules about staying out of the hedge fund world or you have to have a lot smaller institutions so when they melt down they don't take down the economy with them. >> we'll leave it there. many thanks, senator. we appreciate your clarity on the subject. up next, solyndra's pink slip surprise. we are finding out hundreds more were laid off in the obama poster child of a green energy company than originally reported. it's a story that's maybe not so much of a surprise. details when we come back.
solyndra was the first renewable energy company to get a federal loan from the 2009 stimulus act. it left taxpayers on the hook for more than $500 million. the romney camp buying up major air time now spending $3.3 million this week to run tv ads in seven key states plus the super pac restore our future also running ads with the help of a $10 million contribution of sheldon adelson. prosecutors are dropping the remaining charges against john edwards and won't pursue a retrial. he was accused of illegally using a million dollars in campaign contributions. ahead of the greek elections up to 800 million euros or a billion dollars are being pulled out of banks every day. retailers say some of it is used to stock up on food in case there are shortages. i can't imagine bread lines in greece. >> well, imagine away. i'll tell you. this run on the banks and bread
lines and hording. they used to say cans of groceries and gold and head for the hills of the usa. this is the tip of the iceberg of something that worries me enormously. >> do you think it will be a depression? >> i have no idea. it's a problem. it's a known unknown. i don't know how to assess it. it worries me about the entire world economy including our stock market. >> seems like white noise to people. they talk about it every day. >> serious stuff. thank you so much. up next, moments ago treasury secretary tim geithner addressed the world economy hinting the u.s. could be impacted by a european financial melt down. as i said -- and i hate to say it again, folks -- but i'm getting a whiff of global recession. "the kudlow report" will be back. sure. canned goods and withdrawals from greek banks. you can take care of virtually >> announcer: this cnbc >> announcer: this cnbc program is sponsored by legalzoom.com. quyou to start your business...
in 2008 they gave all the money to obama. why the change? plus, new poll numbers tonight show mitt romney taking away the swing state of wisconsin from president obama. we told you scott walker's crusade against public worker union entitlements would have an effect. the question now, will other states follow wisconsin's lead? first up, breaking news. spain has been hit with a double downgrade. moony's cut the rating two notches to one level above junk status and cyprus was put into fears it will be crippled if greece leave it is euro zone. moments ago, treasury secretary tim geithner addressed the world economy at the council of foreign relations. he slipped a hint that the u.s. could be affected by a european financial meltdown. take a listen. >> europe is a large part of the global economy. its challenges are hurting growth here and elsewhere around the world. we have a big stake in helping
them deal more effectively. >> we are already starting to feel the threat. retail sales fell for a second straight month. that's a bad omen for the economy. producer price index fell sharply in may. energy costs dropped the most in every three years. is falling oil a signal that we are actually in the middle of a global recession or at least a dose of deflation? meanwhile, if europe goes down, do we go down, too? what's the president going to do about it? here is brian westbury of first trust advisers and michael ozanian, forbes magazine executive editor and co-host of "sports money." i know you're the bull, brian. i have to tell you. you have go straight months of declining retail sales. it will be a lousy second quarter. you're running the best i can find is about a 2% gdp growth rate which is so close to recession, brian, that any little thing drives you into it. >> well, it's 2% away from
recession, larry. i don't think 2% is that close. we have had one of the most mild winters. for example, the three months ending in march, building materials were up 17.7% on an annual rate. in the last three months they have fallen almost at a 10% annual rate. we had a really warm winter. we're paying back a little bit. gasoline prices are coming down. today's retail sales numbers were up. i'm not trying to say the economy is booming. don't get too worried about the numbers. >> i'm pretty darn worried. my instinct and experience tells me when you get down to 2% or 1.9% you've got a problem. i can tick off the other stuff. you know as well as i do the jobs numbers are faltering. factory orders are down. real income is flat. household wealth, we have the
federal reserve report all the way back to the early 1990s. how close are we to a recession? >> no doubt we'll be in a recession by the end of the year, larry, for the simple reason that we have doubled down on the failed policies that started the first recession years ago. the government is spending too much money. it's overregulated. jamie dimon is being hauled before congress to testify at a loss of a trading decision while he has a profitable bank and the president wants us to have the biggest tax increase in history. he's obviously not studied what happened under fdr. >> how big a factor? talk about the potential for the biggest tax increase in health care. is that inhibiting, a, business hiring and, b, consumer spending? is there a collective, fearful pullback in the economy now? >> absolutely. businesses don't know what to do.
i'm a journalist, larry. i talk to people in industry all the time. particularly small businesses. there is no hiring there. small businesses have been the engine of job creation in this country the last 20 years. there's nothing happening there. fixed gross capital investment has fallen the last two quarters. that's terrible news for our prospects. >> including inventories. if you look at investment in business equipment and software it's grown ten quarters in the a row. up 10% the last three years. >> $400 billion lower than it was in 2006. >> that's not true. >> yes, it is. >> look at the data. >> i did. don't tell me it's not true. i just looked at the data. >> you're including inventories. >> i'm including the bad things. i'm sorry. i should only include the good. >> investment in capital equipment, which is what you were trying to get at. >> i was trying to get at gross fixed capital investment. i know what i was getting at
which is what i said. >> all right. >> we have an inventory report for the month of april. it was very soft. below expectations. >> so when inventories -- >> you have to give mike credit. >> what i'm saying is when inventories are down companies have to rebuild them in the future. if you assume there is a recession coming you would say, don't do that. >> will they rebuild if producer prices keep coming? i'm a strong king dollar guy. what's going on is the dollar is hoot shooting up. we are not getting the lower tax rates to offset it. supply siders said strong dollar, low tax rates. we may get strong dollar high tax rates which is a recession their combination. >> sure. for the last three years, everything you guys both have said tonight has been true. we have had high taxes. higher taxes in the future. spending is up. debt's up. europe's in trouble. dubai is in trouble. foreclosures, small businesses are worried.
that's gone on for three years. we haven't stopped growing. i call it the plow horse economy. it's just slowly growing. >> i'm not thrilled to hear a comparison with europe. i will give you the last word. i believe a steady 2%, 1.9, 1.8, whatever. mike, think that's recession their. some people call them growth recessions. >> that's recession their territory as far as i'm concern spd. we'll leave it there. brian westbury and mike, i like the plow horse economy. i have to think about that one. let's do some stock market work.
we bring in jeff clinetop, lpr financial. look, as though the u.s. wor ohries weren't enough, i myself am so worried about europe i don't see a way out. you could have a greece disaster on sunday. you could have a credit tightening in the banking system. more reports of runs on greek banks. show me a way out of it. i'm worried. >> there isn't an easy way out. boy, they aren't going to decide with a greek election next weekend. they may not decide it for a year. heck, we may not be resolved with the issue over the end of the decade. here's the key for most companies. profits increasingly are driven by emerging market, not europe. we sell three times as much.
the negative to positive preannouncement ratio is 3.5. that's the most negative it's been since the 4th quarter of 2008. so it may be -- we remain defensive, wu come july it may be time to buy. >> i'm an opt misand perhaps i'll be wrong. we have seen report that is corporate revenues are slowing because europe is on its back. india, brazil, china. all slowing substantially. if the corporate rev news and sales slow down, that's not a good omen for profits. profits are the mother's milk of stocks and the economy. >> you bet they are. there is no question about it. how much are they slowing? profits are only expected to be up 6% this quarter. revenues, only 5. those are the lowest we have seen in years. i think they will surprise to the upside on the numbers for
the second quarter. i.t. spending has been good. probably to the upside. some of the media companies are looking good. we can see decent earnings for some of the media companies across the board when you look at business spending, particularly coming from overseas, not europe, but the emerging markets. i think it looks better than expected. that can give us a pop. as we have seen in the last several quarters when we get the earnings reports in july. >> when do you go back in? okay. you're more optimistic and that's great. we need a dose of optimism. i'm going over the side. you mentioned tech and media. what else you got in the book? when would you do it? you can't do it before the greek elections. there is no telling what will happen. >> you're right. you can't do it. heck, you have the fed next week. no telling what will come out of the fed. and the supreme court.
if you're thinking of buying the market, health care will be sensitive to what the supreme court comes out with. >> that could be bullish though. if the supremes knock down the mandates it could take down obama care and businesses may want to hire again, especially small business. that's the most optimistic thing you have said. >> you're right. you have the good, the bad and the ugly. you see what comes out of that position. think about gold, cash. as we get past it, we can begin to see where the investment opportunities lie. we'll nibble on oil and gold here. you can begin -- assuming it goes reasonably well you can buy stocks as soon as the calendar turns to july. >> busy guy. thank you very much for your time. and some of your much needed optimism. up next on kudlow, america's nostalgic for president bill clinton.
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two two major polls making waves today from scott rasmussen. first on the all important show down in wisconsin which could be a game-changer come november, rasmussen's report oh shows mitt romney pulling away from president obama. romney 47, obama 44. that's a big turnaround. second and i love this. check it out. bill clinton, economic hero. when asked whose judgment do you trust more when it comes to the economy, bill clinton or obama, not even close. 55% for clinton. just 26% for obama. let's bring in ace pollster scott rasmussen for more. scott, the wisconsin thing is a turnaround, a key state. is this a game changer or is it too early? >> it's too early to know which way the state will go. four years ago, barack obama carried wisconsin by 14 points. the fact that it's in play gives
you a sense that these aren't the best of times for the obama campaign. larry, listen to the numbers. in march, president obama had 52% support in wisconsin. it fell to 49% a month ago. 44% today. a lot of that has to do with the economy and a lot has to do with scott walker who is now more popular in wisconsin than the president and those public employee unions. >> wonder if walker ought to go on the ticket, scott. >> that would be an interesting play. mitt romney needs to find somebody blond bland. walker did you want fit the bill. but he would fire people up. >> i want to go to my favorite rasmussen poll. on the economy, bill clinton 55%, barack obama 26%. bill clinton. the end of -- let's see, the era of big government is over. i will never forget it. in the campaign so far he's sided with romney saying to
extend the bush tax cuts. nothing wrong with bain capital and romney has a successful business career. people like clinton. >> part of it is they remember the '90s as the modern equivalent of the roaring 20s. it was a good decade economically. they like what you were saying. 63% of americans want the bush tax cuts extended. most people think cutting taxes is good for the economy. what hurts the president through all of this and the reason he suffers by comparison to bill clinton, clinton did give a sense he was interested in slowing the growth of spending. barack obama keeps indicating he wants to spend even more. that's a recipe the american people simply don't buy. >> is that what it says about obama? in other words, i'm going to take it to mean a lack of confidence in obama and people don't want the kind of big government that obama seems to stand for. am i accurate in reading that.
>> you are. obama's ratings for handling the economy, 37% say good or excellent which is not a very strong number. again, every time we poll on a question of what happens with more or less spending, most americans say if you cut spending and you cut deficits it's good for the u.s. economy. they perceive that president obama wants to go in the other direction. >> scott, real quick. have you polled clinton versus romney? >> we have not done that. we did do some things to ask for popular labels. if you were like bill clinton, he does well in that. most americans say it's good. do you know who does better? if you're compared to ronald reagan, that's the best label of all. >> i worked for ronald reagan and i love hearing that. scott rasmussen, thank you very much. up next, obama's anti-business rhetoric is coming back to bite him in the assets.
wall street is voting with their wallets and voting big time for mitt romney. looks like it will be a landslide. we'll be right back. people with a machine. what ? customers didn't like it. so why do banks do it ? hello ? hello ?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello ? ally bank. no nonsense. just people sense.
super pacs six bucks. this is a big turnaround from 2008. let's talk about it. we have jim le cramp, senior vice president of investments at ubs and bob lutz, former general motors vice chairen ma, author of "car guys versus bean counters." jim le camp, is this because the wall street guys, the hedge fund guys, are sick of being insulted and especially their wives are sick of being insulted by barack obama or do they really fall in love with mitt romney? >> wall street likes to back a winning horse. a lot of people asked me in 2008 why wall street was giving obama so much money when he had such a liberal voting record. the answer is because he was going to win. now, if you look at what's happened in wisconsin and you -- you haven't talked much about san jose and san diego elections which confirmed what's going on in wisconsin. people are fed up with this whole union system, the whole
pension system, the whole giveaway system. wall street is saying, i want a winning horse. i don't like the horse i bet on last time. also, i'm seeing a sea change out there. that gives them the confidence that this is a winning horse. >> you don't like romney because romney opposed the gm bailout. >> well, wait a minute. you know, all the forgiven. it depends who his opponent is. i think -- he has since modified his stand on that. he now says he was totally in favor of it and suggested it. that's neither here nor there. i agree. people are fed up and if you look at the dick morris poll, dick morris did a profound analysis state by state, voter group by voter group. about three or four weeks ago he concluded that on the electoral votes it will be a landslide. i have to believe that inves
tors believe their fortunes lie with the american economy. if the american economy does well we get rid of successful and reinstill confidence in the country. everybody's going to benefit. i'm definitely with wall street on this one. >> jim lacamp, i want to ask you -- >> i think this is bullish. >> i want to ask you about the stock market. not always republicans. republicans aren't always great for stocks. bill clinton was fabulous for stocks. fabulous. reagan was good. bush was bad then good then bad for stocks. do you believe the wall streeters giving all the dough to romney, do you think they are betting on another huge bull market? >> we have a lot of issues. we're hitting 9 oh miles per hour down a dead end street. that's what everybody is worried about on the investment front
for now. once we get past that, they will worry about everything you have been talking about. the fiscal cliff. these things aren't going to be helped if obama is re-elected. they know things are going to get better with the tax code if romney is elected and things will be more clear. >> let me ask you this. the stock market has done well under barack obama. i know it comes from a rock bottom level. many obama supporters said to me on the show and they are right. basically stocks have doubled from the lows. no one gives obama credit. since obama hates capitalism in the stock market he never talks about it, but hi ought to. stocks have liked obama. >> they like what the fed has done. we have had the easiest policy in this country. we poured money into the economy. in the long term a lot of the policies particularly from the
fiscal side are dangerous for stocks and are unsustainable. i want to point out probably the best relationship we ever had was with bill clinton and the republican congress. they kept in check the spending. bill clinton was dragged to the center. i'm concerned that if you have a full sweep on the republican side, power has always corrupted and spending can run amok. >> do you believe that business believes that romney will be much better for business? do they believe that? business has been very profitable under obama. i know they are not hiring. i know it's an anemic economy in terms of growth rate. but business has made a lot of money under obama. i'll give you the last word. >> it's like jim says. first of all, there was no place to go but up starting in 2008. secondly, look at the amount of money that was poured in. so, yes, it came back up. but from a low level and for the reasons that were just cited.
i have to believe that all of the businessmen i talked to are worried about this administration, worried about where the country is going. they are solidly behind the republican party. >> sorry to stop you. jim lacamp and bob lutz, thank you very much. thanks for watching this evening. we'll be right back tomorrow. we have discussions about obamacare and see what it means for business. >> announcer: washington to wall street is sponsored by charles schwab. tdd#: 1-800-345-2550 like a lot of things, the market has changed, tdd#: 1-800-345-2550 and your plans probably have too. tdd#: 1-800-345-2550 so those old investments might not sound so hot today. tdd#: 1-800-345-2550 at charles schwab, we'll give you personalized recommendations tdd#: 1-800-345-2550 on how to reinvest that old 401(k) tdd#: 1-800-345-2550 and help you handle all of the rollover details. tdd#: 1-800-345-2550 so talk to chuck tdd#: 1-800-345-2550 and bring your old 401(k) into the 21st century. tdd#: 1-800-345-2550
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